1031 Buyers Take Over 138-Unit Complex

NORTH RICHLAND HILLS, TX-In a 37-day spin, relocated private investors from the Greater Los Angeles area have gotten financing and closed on a 138-unit multifamily asset in Tarrant County. A $3.8-million package, with an 80% loan-to-value ratio and 30-year term, is backing the takeover.

Diamond Loch Apartments at 6100 Glenview Dr. was 96% leased when the deal crossed the closing table. The buyers, now living in Frisco, TX, teamed the financing with 1031 exchange funds from a multifamily sale in Southern California.

BMC Capital LP provided the financing, with Josh Bailey as the loan arranger for the 37-day transaction, which bears a fixed-rate interest hovering 6%, three years of interest-only payments and 30-year amortization. "It would have been 36, but the buyers and seller were going back and forth on the settlement papers," he tells GlobeSt.com.

Scott Henderson and Steve Fithian with Sperry Van Ness in Fort Worth represented the seller, D Loch CP LP of Los Gatos, CA, which had received several offers on its 15-month hold. Diamond Loch Apartments, built in 1978 on an eight-acre tract, contains one-, two- and three-bedroom units, including some two-story townhouses. The 747-sf to 1,400-sf apartments are tagged at $500 to $930 per month.

Bailey says the borrowers are taking on their largest property in their commercial history. "What made us ultimately comfortable is they will have a professional management company to stand behind them," he says. Sophie Li of DFW Homes in Grapevine, TX represented the buyers.

BMC Capital, which is gaining ground in the small loan sector, has just opened offices in San Francisco and Los Angeles. Heading up the San Francisco office is Eric M. Relos, formerly with Washington Mutual Bank. The L.A. office is being led by Robert Flores, a 16-year veteran of the industry who previously was national sales manager for Temecula Valley Bank's Small Business Administration division.